Two executives of Municipal Energy Managers Inc. (MEM), of Moscow, Lackawanna County, surrendered to authorities Thursday, Feb. 14.

Robert J. Kearns, president of MEM, and Patrick McLaine, secretary and treasurer of MEM, were arraigned in Lehigh County Central Booking by District Judge Robert C. Halal on charges stemming from the alleged theft of more than $160,000 from the Borough of Coplay.

Kearns and McLaine were released on $250,000 unsecured bail.

A Northampton County jury convicted Kearns and McLaine Jan. 11 of felony theft for stealing $800,000 from Bethlehem Township by taking money from the township, agreeing to negotiate with PPL Corp. to buy the township's streetlights and, instead, wrote themselves checks after they received the funds.

According to an affidavit of probable cause filed by Lehigh County Chief Detective Michael Millan and Coplay Chief of Police Vincent Genovese:

In April 2009, the Borough of Coplay entered into a business agreement with MEM in which the company agreed to act on behalf of the borough to purchase streetlights within the borough from PPL Corp. within 12 months.

The borough entered into a formal written contract with MEM that required the borough to pay $160,182.

On June 8, 2009, the borough made a payment of $50,000, and on June 15, 2009, the borough made a second payment of $110,182. Borough officials said both checks had been accepted and had been cleared.

The investigation revealed that MEM never entered into formal negotiations with PPL on behalf of the borough for the purchase of streetlights.

Further investigation determined that the two checks from Coplay were deposited into the bank accounts of MEM but that Kearns and McLaine spent the money and that MEM's bank accounts showed no funds. MEM has since filed for bankruptcy.

A preliminary hearing has been scheduled for Feb. 28, in the Whitehall Township office of District Judge Halal.